DWAS Dividend Type Payments

Although DWAS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on POWERSHARES DWA SM-CAP MOMENTUM PORTFOLIO to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

POWERSHARES DWA SM-CAP MOMENTUM PORTFOLIO (DWAS)
Bid Ask Last Change Volume P/E Market Cap
55.73 55.73 55.73 +0.06 18K - 4.0B

DWAS Dividend-Like Income Using Covered Calls

With DWAS at 55.73, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.67 0.5
5% 2.79 0.8
10% 5.57 1.5

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On DWAS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 56.00 0.40 61 0.7 0.27 (0.5%)
Dec 21 56.00 1.15 124 0.9 0.27 (0.5%)
5% Yield On DWAS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 56.00 1.15 124 0.9 0.27 (0.5%)
Mar 15 56.00 1.80 208 0.9 0.27 (0.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
2.SPY dividend 7.GLD dividend   2.MOMO dividend
3.SPX dividend 8.FB dividend   3.UVXY dividend
4.QQQ dividend 9.IWM dividend   4.AKRX dividend
5.XLF dividend 10.GDX dividend   5.LB dividend

Want more examples? DVYL Dividend | DWC Dividend